CareFusion (FRA:TCF) Interest Coverage : 6.85 (As of Dec. 2014)

View and export this data going back to . Start your Free Trial

What is CareFusion Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. CareFusion's Operating Income for the three months ended in Dec. 2014 was €144 Mil. CareFusion's Interest Expense for the three months ended in Dec. 2014 was €-21 Mil. CareFusion's interest coverage for the quarter that ended in Dec. 2014 was 6.85. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for CareFusion's Interest Coverage or its related term are showing as below:

FRA:TCF' s Interest Coverage Range Over the Past 10 Years
Min: 0 Med: 0 Max: 8.92
Current: 8.92

FRA:TCF's Interest Coverage is not ranked
in the Medical Devices & Instruments industry.
Industry Median: 18.02 vs FRA:TCF: 8.92

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

CareFusion Interest Coverage Historical Data

The historical data trend for CareFusion's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

CareFusion Interest Coverage Chart

CareFusion Annual Data

Trend

Jun07

Jun08

Jun09

Jun10

Jun11

Jun12

Jun13

Jun14

Interest Coverage

Get a 7-Day Free Trial

4.29

6.38

6.60

8.14

6.98

CareFusion Quarterly Data
	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14
Interest Coverage	Get a 7-Day Free Trial															7.24	5.89	9.24	N/A	6.85

Competitive Comparison of CareFusion's Interest Coverage

For the Medical Instruments & Supplies subindustry, CareFusion's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

CareFusion's Interest Coverage Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, CareFusion's Interest Coverage distribution charts can be found below:

* The bar in red indicates where CareFusion's Interest Coverage falls into.

CareFusion Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

CareFusion's Interest Coverage for the fiscal year that ended in Jun. 2014 is calculated as

Here, for the fiscal year that ended in Jun. 2014, CareFusion's Interest Expense was €-66 Mil. Its Operating Income was €457 Mil. And its Long-Term Debt & Capital Lease Obligation was €1,465 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Jun. 2014 )	/	Interest Expense (A: Jun. 2014 )
	=	-1	*	457.056	/	-65.504
	=	6.98

CareFusion's Interest Coverage for the quarter that ended in Dec. 2014 is calculated as

Here, for the three months ended in Dec. 2014, CareFusion's Interest Expense was €-21 Mil. Its Operating Income was €144 Mil. And its Long-Term Debt & Capital Lease Obligation was €1,612 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2014 )	/	Interest Expense (Q: Dec. 2014 )
	=	-1	*	144.358	/	-21.086
	=	6.85

The higher the ratio, the stronger the company's Financial Strength is.

CareFusion (FRA:TCF) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

CareFusion Interest Coverage Related Terms

Thank you for viewing the detailed overview of CareFusion's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

CareFusion (FRA:TCF) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » CareFusion Corp (FRA:TCF) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

CareFusion Corp a Delaware corporation was incorporated on January 14, 2009. It is a medical technology company. The Company offers a portfolio of products in the areas of medication management, infection prevention, operating room and procedural effectiveness, and respiratory care. Its primary product brands includes: Alaris intravenous (IV) infusion systems, Pyxis and Rowa automated medication dispensing and supply management systems, AVEA, Vela and LTV Series respiratory ventilators, ChloraPrep skin antiseptic products, MedMined data mining surveillance software and analytics, Vital Signs single-use consumables for respiratory care and anesthesiology, and Jaeger and SensorMedics cardiopulmonary diagnostic equipment. The Company operates in two business segments: Medical Systems and Procedural Solutions. In the Medical Systems segment, the Company develops, manufacture and market capital equipment and related supplies for medication management, which includes our infusion and medication dispensing technologies, supply management, as well as respiratory ventilation and diagnostic technologies. In the Procedural Solutions segment, the Company develops, manufacture and market single-use skin antiseptic and other patient-preparation products, specialty IV infusion valves, administration sets and accessories, IV catheters, IV drug preparation products, reusable surgical instruments, non-dedicated ventilator circuits and other disposables used for providing respiratory therapy, as well as single-use consumables for respiratory care and anesthesiology. The Company's competitors includes Baxter International; B. Braun; Fresenius Kabi; Hospira; Omnicell; McKesson; DrÃ¤ger; MAQUET, 3M; ICU Medical; Becton, Dickinson; Baxter International; B. Braun; Hospira; Smiths Medical; CR Bard; Integra Life Sciences; and Teleflex. The Company's operations are subject to the Federal Food, Drug and Cosmetic Act (FDC Act), as implemented and enforced by the United States Food and Drug Administration (FDA).